Hello everyone.  My name is Sheila and I just had a general question.  I would love to be involved in crafts.  I have sat with my cousin at craft shows and she is a top seller at every festival that comes to our town.  She makes what I call dog art—porcelain dog characters, and sometimes other types of sculptures.  These are a big hit at arts and craft fairs!  I have seen her table swarmed by people, so I know there’s good money in this.

The only problem is, I don’t have much “capital” to get started.  I have a general idea on the crafts I want to make.  But then I read that in order to start doing the art shows or craft shows you have to have trucks and have to pay huge rental fees, and handle so many other expenses.  (Is this true?  I assume it is) 

So I guess my question is, with all this government stimulus money going around (maybe you’ve heard about it, haha) does anyone know anything about grants or incentives for small business or the arts?  I wouldn’t need huge collateral, just enough to get started at craft events full time.  I’m open to any suggestions.  Is there any government programs available or private foundations, I’m not sure exactly how it works.  Oh and I’m not above using my minority status if that’s what it takes!  Money is hard to come by these days!  :)

Thanks in advance for answering my question!

Yeah, I know. Seems like you should be able to use some of that money to get a business started. I’ve been trying to get my own small business off the ground for about a year now so I definitely know how hard it can be to get the money you need. I’m not sure about the trucks and stuff because right now I’m mainly doing concessions. At some point in the future I would like to maybe branch off into the crafts but that’s probably way down the road. I did find some information on different ways that the economic stimulus money might be used to fund a small business start-up because I could really use some help myself. It’s expensive to buy the equipment you need for concessions, not to mention the overhead for the food.

Some of the money is going to tax breaks. If you’re married you can get a tax break of $800 for couples or $400 if you’re single, but the problem is that the credit is being issued in weekly installments in your paychecks. I’m definitely planning to take the extra money and put it toward my business, but if you’re like me you probably need more money than that to really get the ball rolling.

You’ve probably heard about some of the different consumer incentives like the programs for buying a home or car or new energy efficient appliance. The tax deductions and credits from that would be great but I’m not really in a position right now to go out and buy a new car or a house.

I did come across some information about stimulus money going to targeted industries, but the money was going toward energy, housing, infrastructure, education and things like that. I couldn’t really see where I could make my business fit in one of those industries, unfortunately, but maybe you could figure out a way to show that you’re selling products that are related to those services?

Basically what I’m doing right now is just trying to cut back and spend less so that I will have more money to put toward my business. A financial planning friend of mine sat down with and we worked out a financial plan so that I can cut back on some expenses that I had been paying on a regular basis and I’ve been taking that money and funneling it toward the business. It hasn’t been a lot, I admit, but it’s better than nothing and I have been able to pick up some extra pieces of equipment that I really needed.

Best of luck to you

Hi Sheila-cl76,

I’m right there with you on the “finding funding” bandwagon! I’ve been doing fairs and craft festivals for a number of years now and it’s never stopped surprising me the number of things you have to pay for. Lucky for me, my “art” doesn’t require a ton of supplies. I make hand carved walking sticks and other wooden oddities, so all I really need is a sharp knife, some sandpaper and a bit of wood stain (for a basic creation, of course).

However, you have to pay for a lot more with craft fairs than just the creation of your products. You have to take into account sales tax, a tax ID, any type of business licensing required in your area, rental fees (for your booth), licensing for concessions (if you’re going to do food) and even art licensing. All of it requires money.

The best advice I can give you is start small and plan ahead. For instance, I took a year prior to my first show to start making products to sell at that particular craft fair. I also saved up money and did some research on the fees required to participate in that particular show (that’s important, as fees vary WILDLY with different fairs).

If you can manage to start small and save money for your first showing, you’ll be able to fund the rest (hopefully) with part of your profits.

I did manage to find some interesting resources while poking around the website here. While they don’t really deal with specifics, these two articles can give you a starting point for your search.

This one’s about taxes and such: http://www.fairsandfestivals.net/articles/view/craft_shows_and_taxes/118

This one is just a bunch of really great tips for anyone interested in selling their art at local fairs and festivals: http://www.fairsandfestivals.net/articles/view/tips-for-selling-on-the-road-/505

I hope those two will get your gears turning - if you have any other questions, I’ll do my best to help! :)

Thanks,
WdCrvrEd

Thanks to the both of you!  I’ve taken down some notes.  I’ll let you know if I find any good news!  :)

Hi, Sheila

An arts business works as does any other business: It takes money to make money. Where starting small is concerned, you may want to start out with a diverse selection of products which cost little to produce and transport and see which of those sell the best. If one or two of them go really well, put your money toward those products and grow the business gradually.

As the other poster said, make sure you have all your tax stuff together. While this may be a bit of a pain, it does give you a reason to make sure your accounting is very accurate and that is one of the basic requirements for getting a business off the ground.

Craft fairs are a great way to learn to do business. Craft vendors have to interact with the public, test out products and do it all on a limited budget. This is a good challenge for anyone, even an experienced business person, but it’s also a great opportunity. Remember that arts and crafts festivals constitute a pretty tight circuit of individuals and events and there is always that chance that what you sell at one festival may be word-of-mouth advertised at others! Keep in mind what the other poster said about fees. If you can find a few festivals that charge low fees for vendor booths, you can put that money into the material you bring to sell and stretch your dollars further. As a side note, make a simple website and bring some materials to advertise that, as well!

The type of equipment that you need to start going to craft shows and fairs really depends on what type of craft you’re going to be selling.  My grandmother and my aunt used to make “angel pins” and necklaces.  We were able to pack up everything they needed in the trunk of their car.  Of course, angel pins are pretty small!  We would do horse shows, craft shows, the fair and any other venue they could get into and never needed anything huge to haul their stuff in.  So, depending on what you’re selling and making, you really might not need a truck.  The fees for the shows are going to vary depending on their popularity and size of course, so that will vary. 

I doubt we’re going to be seeing any stimulus money come around to us crafters, but you might be able to find some small shows in your area that you can get started at.  Down here in Amarillo, we have churches and the high schools that hold craft fairs, usually in the fall.  Some of these are small, but it’s a good way to get to know some of other crafters – even the Pampered Chef and Mark Kay ladies! They all tend to go to the same shows and help each other out.  You might not sell a lot, but you’ll definitely learn a lot.  Like mkolberg said as well, this is a great way to learn how to do business.  Search for shows around your area and check them out as a shopper before you decide to jump in. http://www.fairsandfestivals.net/events/search/